A US judge dismissed charges against Ms. Khobragade. The US prosecutor had re-indicted her.
Sun Pharma has received a US import alert on its plant in Gujarat.
Arvind Subramanian (AS) has written a good piece on the US pursuit of trade action against India. A fortnight before India elects a new government, the United States Trade Representative could declare India a ‘priority foreign country’ under US Special 301 – a ‘Trade and Industry Practices’ report. A ‘priority foreign country’ is considered, by the US, to be the worst offender of intellectual property rights and this designation of India would necessitate the US imposing trade sanctions. He makes an important point that the intellectual property regime expected of India was instituted in other countries at a much higher level of per capita income and economic advancement. The table is worth reflecting upon.
This piece has to be read together with the piece on the same topic by Professor Arvind Panagariya (AP), written on March 4. In contrast to AS, AP mounts a more forceful defence of India’s position and actually argues that US Special 301 is inconsistent with its WTO obligations. Far from exhorting the US to use the WTO dispute settlement forum as AS does, AP challenges them to do so. He calls up on India to call the American bluff.
On financial liberalisation too, American interests are itching to trump Indian interests. I shall write about it in Pragati and provide the link here later.